Singer revenue increases to Rs. 14 b in 1H, profits impacted by deemed VAT

Monday, 25 August 2014 00:03 -     - {{hitsCtrl.values.hits}}

Singer (Sri Lanka) notched a 14% increase in Group revenue in the second quarter of the 2014 financial year, compared to the same period of the previous financial year. This follows an 8% increase in revenue in the first quarter of 2014. Group revenue crossed the Rs. 14 billion mark at the end of the first half, indicating an 11% increase. Company revenue for the first half climbed by 12% with Singer Finance, a Group subsidiary, reporting a first half increase in revenues of 7%. Although revenue has been trending upward, profits have been affected by the imposition of the deemed VAT. The Group’s net profits declined by 18% while Company net profits decreased by 19% primarily due to deemed VAT.  Singer Finance recorded a 6% decrease in net profit for the first half. Selling and administration expenses increased by 10%, due to inflation and an increase in rents and electricity expenses. The Group’s net finance costs, however, decreased by 18%, as interest rates and borrowings declined. Business conditions continued to prove challenging, with the prevailing drought conditions and resulting difficulty in collections affecting the industry overall. However, Singer’s industry-best systems and culture have allowed it to maintain momentum.  For example, the Group has been able to leverage its state-of-the-art online real-time ERP system, as well as its call centre service, SMS reminders and more traditional collection drives to ensure that the collections process was well managed. Revenue from the Group’s communications segment, increased by35%, while revenue also grew in its other major segments, including consumer electronics, white goods, and sewing-related products. Singer (Sri Lanka) currently operates more than 400 outlets island-wide and offers a staggering selection of the world’s best brands and products, giving customers unrivalled access to the lifestyle they desire. Singer Sri Lanka has also snagged the country’s most coveted brand accolades, including ‘People’s Brand of the Year’, ‘Youth Brand of the Year’, and ‘Consumer Durables Brand of the Year’, cementing its leadership position in the industry.